Almaden Minerals Ltd. (“Almaden” or “the Company”;
TSX: AMM; NYSE
American: AAU)
is pleased to announce additional results of its ongoing review of
exploration targets which lie outside the currently defined reserve
envelope of the Ixtaca deposit (See Figure 1, Exploration Targets).
The Main Ixtaca Zone of the Ixtaca deposit is
hosted by limestone where the veins form a wide zone of veining
referred to as a vein swarm. This vein swarm in limestone has been
the primary focus of the Company’s exploration efforts to date and
the Feasibility Study level technical examination of the Ixtaca
deposit (see “About the Ixtaca Deposit”, below).
Adjacent to the Main Ixtaca Zone, shaley
carbonate rocks host the more discrete focussed gold-silver vein
related mineralisation of the Northeast Extension Zone, which also
has higher associated zinc and lead values. Based on structural
interpretation, the Main Ixtaca Zone gold-silver vein swarm could
be the upper part of a vein system which transitions at depth to
structurally controlled silver-lead-zinc dominated mineralisation
where the Northeast Extension Zone would project down dip
underneath the Main Ixtaca Zone (see Figure 2, Longitudinal Section
of Main Ixtaca Zone and Cross Section of Northeast Extension Zone).
This potential for metal zonation from upper gold-silver to deep
silver-lead-zinc mineralisation is supported by geologic
interpretation, geologic models for epithermal precious metal
deposits and observations made in other epithermal vein deposits in
Mexico.
Drilling to depth beneath the Ixtaca Main Zone
will be a priority in a future drilling program currently being
planned by the Company.
About the
Ixtaca Deposit
Since discovery with the first drill hole,
exploration work at Ixtaca has been almost entirely focused on the
discovery area, and this work has led to the silver and gold
reserve which underpins the feasibility study (“FS”), results of
which were announced in December, 20181.
The highlights of the FS, using base case prices
of US$1275/oz gold and US$17/oz silver unless noted otherwise,
include the following (all US dollars):
-
Average annual production of 7.06 million ounces silver and 108,500
ounces gold (15.2 million silver equivalent ounces, or 203,000 gold
equivalent ounces)2 over the first 6 years;
-
After-tax IRR of 42% and after-tax payback period of 1.9
years;
-
After-tax NPV of US$310 million at a 5% discount rate;
-
After-tax IRR of 57% at the highest upper case price deck of
US$1425/oz Au and US$20/oz Ag;
-
After-tax NPV (5%) of US$466 million at the highest upper case
price deck of US$1425/oz Au and US$20/oz Ag;
- Initial Capital
of US$174 million;
- Average annual
production of 6.14 million ounces silver and 90,800 ounces gold
(12.9 million silver equivalent ounces, or 173,000 gold equivalent
ounces) over an 11 year mine life;
- All-in
Sustaining Costs (“AISC”), including operating costs, sustaining
capital, expansion capital, private and public royalties, refining
and transport, of US$11.30 per silver equivalent ounce, or US$850
per gold equivalent ounce;
- Elimination of
tailings dam by using filtered tailings, which reduces the project
footprint and water usage. Construction of a water reservoir
providing a permanent and consistent long-term supply of water for
residents.
1 For more details please refer to Almaden’s Technical Report,
entitled “Ixtaca Gold-Silver Project Puebla State, Mexico NI 43-101
Technical Report on the Feasibility Study”, which was updated on
SEDAR on October 3, 2019.2 Equivalent calculations use a ratio of
75:1 for silver : gold (based on $1275/oz-Au and $17/oz-Ag)
While it awaits the outcome of its permitting
application and related processes (see press releases of February
27, 2020 and September 9, 2020), the Company is proceeding with
exploration at this large property with a focus on some previously
identified high potential targets which lie outside of the current
reserve as defined in the FS.
Exploration Opportunities
The Ixtaca deposit is one of several exploration
targets on the Company’s mineral claims, which cover an area of
high-level epithermal clay alteration. The project area is
partially covered by volcanic ash deposits which mask underlying
alteration, potential vein zones and associated soil responses. In
areas devoid of this covering ash soil sampling has defined several
distinct zones of elevated gold and silver values and trace
elements typically associated with epithermal vein systems. The
Ixtaca zone is one of the largest areas of gold/silver soil
response but it is also one of the areas with the least ash cover
on the project.
Management believes that the other altered and
geochemically anomalous areas could represent additional zones of
underlying quartz-carbonate epithermal veining like the Ixtaca
zone. The potential quantity and grade of these exploration targets
is conceptual in nature. There has been insufficient exploration
and/or study to define these exploration targets as a Mineral
Resource. It is uncertain if additional exploration will result in
these exploration targets being delineated as a Mineral
Resource.
John A. Thomas, P. Eng., VP Project Development
of Almaden, and a Qualified Person as defined by National
Instrument 43-101 ("NI 43-101"), has reviewed and approved the
scientific and technical contents of this news release pertaining
to the FS. Morgan J. Poliquin, Ph.D., P. Eng., President and CEO of
Almaden, and a Qualified Person as defined by National Instrument
43-101 ("NI 43-101"), has reviewed and approved all other contents
of this news release.
About AlmadenAlmaden Minerals
Ltd. owns 100% of the Ixtaca project in Puebla State, Mexico,
subject to a 2.0% NSR royalty held by Almadex Minerals Ltd. The
Ixtaca Gold-Silver Deposit was discovered by Almaden in 2010.
On Behalf of the Board of Directors,
“J. Duane
Poliquin” J. Duane
Poliquin, P. EngChairmanAlmaden Minerals Ltd.
Forward Looking Statements
Certain of the statements and information in
this news release constitute “forward-looking statements” within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and “forward-looking information” within the
meaning of applicable Canadian provincial securities laws. All
statements, other than statements of historical fact, are
forward-looking statements or information. Forward-looking
statements or information in this news release relate to, among
other things: the outcome or nature of any exploration programs at
Ixtaca, and the ability of the Company to comply with COVID-19
related health protocols.
These forward-looking statements and information
reflect the Company’s current views with respect to future events
and are necessarily based upon a number of assumptions, including
assumptions in respect of both Almaden’s and the applicable Mexican
Authorities’ legal positions, that, while considered reasonable by
the Company, are inherently subject to significant legal,
regulatory, business, operational and economic uncertainties and
contingencies, and such uncertainty generally increases with
longer-term forecasts and outlook. These assumptions include:
stability and predictability in Mexico’s mineral tenure, mining,
environmental and agrarian laws and regulations, as well as their
application and judicial decisions thereon; continued respect for
the rule of law in Mexico; prices for gold, silver and base metals
remaining as estimated; currency exchange rates remaining as
estimated; availability of funds; capital, decommissioning and
reclamation estimates; mineral reserve and resource estimates;
prices for energy inputs, labour, materials, supplies and services
(including transportation); no labour-related disruptions; all
necessary permits, licenses and regulatory approvals being received
in a timely manner; the ability to secure and maintain title and
ownership to properties and the surface rights necessary for
exploration and operations; community support in the Ixtaca
Project, ; and the ability to comply with environmental, health and
safety laws. The foregoing list of assumptions is not
exhaustive.
The Company cautions the reader that
forward-looking statements and information involve known and
unknown risks, uncertainties and other factors that may cause
actual results and developments to differ materially from those
expressed or implied by such forward-looking statements or
information contained in this news release. Such risks and other
factors include, among others, risks related to: political risk in
Mexico; crime and violence in Mexico; corruption; environmental
risks, including environmental matters under Mexican laws and
regulations; impact of environmental impact assessment requirements
on the Company’s planned exploration and development activities on
the Ixtaca Project; certainty of mineral title and the outcome of
litigation; community relations; governmental regulations and the
ability to obtain necessary licences and permits; risks related to
mineral properties being subject to prior unregistered agreements,
transfers or claims and other defects in title; changes in mining,
environmental or agrarian laws and regulations and changes in the
application of standards pursuant to existing laws and regulations
which may increase costs of doing business and restrict operations;
as well as those factors discussed the section entitled "Risk
Factors" in Almaden's Annual Information Form and Almaden's latest
Form 20-F on file with the United States Securities and Exchange
Commission in Washington, D.C. Although the Company has attempted
to identify important factors that could affect the Company and may
cause actual actions, events or results to differ materially from
those described in forward-looking statements or information, there
may be other factors that cause actions, events or results not to
be as anticipated, estimated or intended. There can be no assurance
that our forward-looking statements or information will prove to be
accurate. Accordingly, readers should not place undue reliance on
forward-looking statements or information. Except as required by
law, the Company does not assume any obligation to release publicly
any revisions to on forward-looking statements or information
contained in this news release to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
Contact Information:
Almaden Minerals Ltd.Tel. 604.689.7644Email:
info@almadenminerals.comhttp://www.almadenminerals.com/
Maps accompanying this announcement are available
at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3164e1ab-dd33-4a48-84d7-b79d326564d0
https://www.globenewswire.com/NewsRoom/AttachmentNg/1e60ad62-2cdd-4dad-816e-d567f15fb564
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